Tag: AUD VS USD

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AUD/USD Forecast: Aussie depending on the market’s sentiment

Paper currency. Australian money.

The 0.75 handle has previously served as resistance, so it’s highly possible that we’ll have to work a little to get beyond it. On the downside, we had broken through the 0.75 handle.

If we break below this weekly candlestick, we’ll almost certainly aim for the 0.75 level below, and look closely at the weekly chart, you can see the big head and shoulders pattern that just broke down.

(Source: The Economics Times)

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After the meeting, the RBA will welcome the decline in the value of the Australian dollar.

Even as it starts to reduce its quantitative easing programme, the RBA is expected to applaud the Australian dollar’s reaction to its policy moves, hoping that it would help it achieve its goal of bringing inflation down within its target range. Even as the market begins to price in rate hikes as early as 2022, the RBA repeated on Tuesday that it does not plan to raise the cash rate before 2024. Even as the market starts to price in rate hikes as early as 2022, the RBA repeated on Tuesday that it does not plan to raise the cash rate before 2024.

Following the RBA conference, markets shifted their rate expectations forwards. They had returned to where they were before the meeting by Wednesday. Because of its position, the RBA may be one of the last major central banks to raise interest rates. While many in the market saw the RBA’s actions as hawkish, it continues one of the most dovish major central banks in the world.

Source afr

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Predictions for AUD/USD and NZD/USD — Rising Risk Demand Aids Commodity-Linked Aussie, Kiwi

The AUD/USD concluded at.7490 on Friday, up 0.0059 or +0.79%, while the NZD/USD finished at.6999, up 0.0052 or +0.75%.The surge in Treasury yields in the United States on Friday boosted riskier assets and currencies, with global stock markets surging and commodity-linked Australian and New Zealand Dollars gaining traction.

Treasury yields are rising, while U.S. stocks are reaching new highs, and the dollar is weakening

Treasury yields rose further on Friday, as the 3 key US stock indexes soared to new highs, as markets eased off their fears of a faltering economic recovery following COVID-19, which had dominating trading for much of the week. Early in the week, fears of a failing recovery, fueled in part by the spread of the Delta coronavirus, lowered risk appetite and triggered flight-to-safety bond purchases, with some wagering the reflation trade had stopped.

On Thursday, 10-year US government bond yields fell to a four-and-a-half-month low as a result of this action. Investors were cutting short bond positions through July 6, according to data released on Friday, which pushed on yields. Stocks gained as financials and other economically focused sectors recovered from earlier in the week’s selloff driven by growth concerns.

Throughout the week, the Aussies and Kiwis have been under pressure.

The Australian and New Zealand currencies were under pressure for the majority of the week as global risk aversion damaged equities and lowered bond yields, while a further lockdown in Sydney posed a threat to the domestic economy. The news that Sydney’s lockdown will be prolonged for a third week did not assist the Aussie, as the Delta variant outbreak showed no signs of decline.

The country’s economic interruption merely highlighted the necessity for the Reserve Bank of Australia (RBA) to maintain its stimulus, with Governor Philip Lowe stating that interest rates are unlikely to rise before 2024.

Source finance.yahoo

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Fears over the economy have pushed the Australian dollar to a one-year low.

Investors interested in US bonds

As investors raced into safe assets like US government bonds, the decrease matched a small decline in the New Zealand dollar, which is also closely linked with growth, as well as declines in US and European sharemarkets. Only a few weeks earlier, the main concern on financial markets was that unprecedented levels of fiscal and monetary stimulus would cause inflation to spiral out of control.

Now, markets are expressing increasing concern about the possibility that a reduction in stimulus from the likes of the US Federal Reserve could hinder the comeback before the global economy has fully recovered from the pandemic.

Reason for drop Aussie dollar

The Australian dollar has dropped in value just days after the Reserve Bank of Australia announced a plan to gradually withdraw quantitative easing and stop buying yield curve control bonds in April 2024 rather than continuing it to the next issuance. The initiatives are the first, cautious steps towards reducing the record levels of monetary stimulus, which also include $200 billion in bond purchases to underpin rates and lower borrowing costs across the economy in order to stimulate development.

Spite of low in stimulus, the July meeting was dovish overall, as the RBA reiterated its expectation of raising interest rates in 2024, while market pricing suggests other central banks may move faster. The Fed’s recent effort to contemplate reducing its massive bond-buying programmes against the backdrop of a chronic COVID-19 threat, with new varieties like the delta strain forcing even fully vaccinated nations like Israel to consider fresh lockdowns, has fueled fears that stimulus may be withdrawn.

Comments on Aussie dollars by Rodrigo Catril, senior FX strategist, NAB

The Australian dollar is extremely susceptible to growth, and there has been a change in focus to growth worries. The RBA’s overall message is that it is dovish in comparison to other central banks. The economy and labour market are strengthening quicker than the RBA anticipated, indicating slowing, but wages growth has not exceeded projections, so no rate hikes are projected until 2024.

Source AFR

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AUD/USD Price Analysis: Struggles for resistance on the road to recovery

The Relative Strength Index (RSI) has flattened out, hovering just below overbought zone, supporting the recent market correction.

If the purchasing interest resumes, the bulls will break above the resistance noted above, opening the way to the July 7 high of 0.7536.

Price Analysis

Failure to reclaim the 0.7490 supply zone, on the other hand, could reawaken the selling, resulting in a new downswing towards the 0.7450.

The upward-sloping at 0.7441 could come into play further south.

(Source: fxstreet)

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AUD/USD rises to the 0.7500 area after Federal Open Market Committee minutes

Minutes contain no noteworthy surprises.

According to the minutes, Fed officials believe the criteria of “substantial further progress” required to change monetary policy has not yet been satisfied. Several FOMC members stated that they expect the pace of asset purchases to slow down and those criteria would be met sooner than expected.

Following the minutes, the US dollar retreated across the board, wiping off the previous day’s gains. The DXY fell to the 92.50 level, turning negative. US yields are still hovering around daily lows. The 10-year note is currently trading at 1.31 percent, its lowest closing since February 18.

Short-term Outlook

With the price well below the 20-day simple moving average, the AUD/USD remains negative (SMA). The pressure will be relieved if the Aussie recovers over 0.7540, and it will rise above 0.7600/05. The 0.7560 area, where the 20 and 200-day SMAs intersect, will be a key milestone to watch.

The key support, on the other hand, is at 0.7455. A break below 0.7400 would pave the way for additional losses, with the initial target being around 0.7400.

(Source: FXSTREET)

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When is the best time to buy Bitcoin? JPMorgan provides a metric to monitor.

How to find Bitcoin’s market cap

Divide the total Bitcoin’s market capitalisation by the total market capitalisation of all cryptocurrencies to find Bitcoin’s dominance. Bitcoin currently has a 44.7 percent market share, according to the indicator. By comparison, in April, it was about 60%.

There are two possibilities for the dominance to return to 50%: one, if Bitcoin’s price rises, increasing its market share; and two, if other coins see a large sell-off, thus pushing the cryptocurrency market cap down.

Comments on Bitcoin by Nikolaos Panigirtzoglou, JPMorgan

With a proportion of Bitcoin of 50% or more of the overall cryptocurrency market capitalisation, this is a good number. That, I believe, is another indicator to keep an eye on in order to determine whether or not the bear market is gone. Bitcoin’s low market share was a negative indicator, indicating a low level of interest in the currency. Bitcoin’s market share has climbed in over the last week, which is worth noting.

Comments on Crypto Markets by Avinash Shekhar, Co-CEO, ZebPay

Despite the latest price drop, crypto markets have seen tremendous gains over the prior 6-9 months. However, the market is still trading considerably above 2017’s all-time high pricing. This is a good indication that the market is still optimistic. We anticipate future enhancements to various blockchain networks and believe that this space will gain greater fundamental strength, resulting in long-term development.

Source:- Economic times

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The Australian dollar may suffer as a result of the RBA’s actions.

Analysts believe the RBA will not prolong its yield curve objective than April 2024, but the next phase of its quantitative easing programme is less definite. The third phase of QE may comprise $5 billion weekly bond purchases with an adjustable lever associated, allowing the RBA to reduce in reaction to economic developments without producing too much uncertainty, according to ANZ strategists and others.

In the lacking of a significant taper announcement, Commonwealth Bank predicts the dollar’s ongoing decline will continue. The Australian dollar has been under pressure in over the last week as a rebounding greenback has risen on expectations that the Federal Reserve will raise interest rates twice by 2023.

Despite commodities prices being higher and Australia earning its 41st consecutive trade surplus in May, and continuing on track to extend that streak in June, the fallout was enough to drive Australia’s dollar lower.

Expert’s predication on Australian dollar

Many experts predicted the Australian dollar would break beyond US80 in the following months due to these factors, but other reasons have already come into play, causing analysts to revise their expectations. This scenario, combined with Westpac’s projection that the RBA will raise interest rates in early 2023, prompted the bank to lower its Australian dollar end-of-year estimate from US82 to US80.

ANZ FX strategist John Bromhead Comments

Given that the resolution on the yield target is set for April 2024, we believe the devil will be in the details of the QE programme. We don’t believe there will be a reduction in volume, but the real test will be how transparent they are with the evaluation process and how frequently they conduct it.

Source:- afr

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Bitcoin is almost in the same position as it was a week ago

According to CoinGecko, it has been flat for the past seven days and down roughly 0.5 percent in the last 24 hours.

Bitcoin did briefly soar above $39,000 the previous Sunday, thanks to a tweet from Tesla CEO Elon Musk (TSLA) – Get Report. It also topped 40,000 last week, but the value for the month has been rather consistent, as it was about $34,473 on May 23. This is good news for a coin that was worth less than $10,000 a year ago and more over $64,000 in April.

In terms of other cryptocurrencies, Ethereum’s ETH has dipped somewhat in the same time frame, hovering around $2,259.81 on Sunday. That’s a 5% drop in a week and a 2.6 percent increase in the last 24 hours.

Dogecoin saw the greatest drop this week, falling nearly 10% to 28 cents. This represents a 2.7 percent decrease in the last 24 hours.

However, bitcoin’s present value demonstrates the currency’s inability to move dramatically up or down in recent weeks. It had dropped precipitously in the months since hitting a high of over $64,000 in mid-April.

Source: thestreet.com

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Cryptocurrency prices on June 17: Bitcoin, Uniswap, and Tether are all down.

The sell-off in major cryptos has hurt other peers’ feelings. According to a poll done by the Bank for International Settlements, central bank digital currencies would complement rather than compete with cryptocurrencies, despite the fact that they are essentially similar to fiat currencies.

“BTC’s upbeat attitude isn’t always in tune with most altcoins on a larger, more general scale. This has been a very typical occurrence, and a pattern is emerging. Altcoins will tend to pull back during a BTC rally, and once BTC has stabilised, an altcoin uptrend will commence, gradually increasing speed “According to ZebPay Trade Desk.

According to opinion poll, more than nine out of ten independent financial advisers in the UK would never advise their clients to invest in cryptocurrencies or “meme stocks.” Meme stocks and digital coins have grown in popularity as a result of the epidemic, which has driven a surge in non-professional stock investment.

BTC’s price surged from $38,200 in early trading hours on Thursday to a high of $39,500 by midday before plunging to a low of $37,365 as bears grabbed control of the market, according to data from Cointelegraph Markets Pro and TradingView.

Increased inflows to spot exchanges were one indicator offered before of Bitcoin’s price crash on June 17, prompting some analysts to speculate that traders who failed to cash out around the high are now locking in wins at lower highs.

Source:-

Crypto News and Economic India

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.